Allocation and apportionment of income of major medical laboratory service business with taxable activities within and without state

1. Law
2. Mississippi Code
3. Taxation and Finance
4. Income Tax and Withholding
5. Income Tax
6. Allocation and apportionment of income of major medical laboratory service business with taxable activities within and without state

1. For purposes of the income tax imposed by this chapter, a major medical laboratory service business whose business activity is taxable both within and without this state shall apportion its business income (income which is includable in the apportionable tax base) to this state by multiplying such income by an apportionment percentage determined in accordance with this section.
2. The net business income which has not been allocated, directly assigned or excluded shall be apportioned to Mississippi by multiplying such business income by a single sales factor. The sales factor is a fraction, the numerator of which is the receipts from medical laboratory services and other receipts of the taxpayer in this state during the taxable year, and the denominator of which is the total receipts of the taxpayer within and without this state during the taxable year.
3. 1. Receipts attributable to medical laboratory services are determined to be within Mississippi if the medical laboratory services are provided on behalf of an individual or patient whose service address is located in this state at the time the service is performed.
   2. Receipts attributable to medical laboratory services performed in this state shall be thrown back and sourced to this state if, pursuant to the patient service address rule in paragraph (a) of this subsection (3):
      1. The receipts are sourced to a state or local jurisdiction in which the taxpayer is not subject to an income or gross receipts tax (other than a general sales tax) during a given taxable year, or
      2. The company is subject to an income or gross receipts tax in another state or local jurisdiction but the laws of that jurisdiction do not source such receipts to that jurisdiction.

      For purposes of this paragraph (b), a company shall be considered taxable in another state or local jurisdiction if it files a separate company income or gross receipts tax return in that state or local jurisdiction, it is included in a unitary or combined group income or gross receipts tax return in that state or local jurisdiction, or if the state or local jurisdiction has authority to levy an income or gross receipts tax upon the company regardless of whether that jurisdiction actually levies such a tax.

   3. Any other receipts of the taxpayer not attributable to medical laboratory services shall be sourced to this state pursuant to regulations of the department.
4. For purposes of this section:
   1. "Major Medical Laboratory Service Business" means a company that performs laboratory testing and analysis for the medical industry and that invests a minimum of Twenty-five Million Dollars ($25,000,000.00) in land, building, and/or equipment located in Mississippi and creates two hundred eighty (280) new full-time, direct jobs within three (3) years of start of operations, as certified by the Mississippi Development Authority.
   2. "Medical Laboratory Services" means laboratory testing and analysis performed for the medical industry.
   3. "Service address" means the physical location of the doctor's office, clinic, or other medical facility requesting the testing or analysis.

Download our app to see the most-to-date content.